Consumer groups fight high medicine prices

THREE major organisations have joined forces against what they say are unfairly high medicine prices.

The groups are opposing a Pharmacy Guild of Australia petition against a new government policy aimed at reducing drug prices.

Under the policy drug companies will need to disclose the cost price of medicines, and the price the government pays will be adjusted every 12 months instead of the current 18 months.

Choice, Consumers Health Forum (CHF) and poverty lobby group Acoss say Australians pay much more for medicines than people in other countries.

Choice CEO Alan Kirkland says price disclosure is about making sure the price paid by government reflects the price paid by pharmacies.

University of Melbourne Health Economics Professor Philip Clarke says the new policy means prices will be adjusted every 12 months instead of every 18 months.

"However, there is scope to go much further. In England drug prices are adjusted every three months."

Grattan Institute Professor Stephen Duckett says the government pays pharmacists for dispensing medicine and they should not be keeping prices high as well.

"The pharmacy industry needs to move away from relying on inflated subsidies," says CHF chief executive Carol Bennett.

The groups say it is estimated that $1 billion a year could be saved if medicines in Australia cost the same as in New Zealand.

The savings could be used for listing new drugs.

The Pharmacy Guild of Australia says members are concerned about the impact on jobs and livelihoods.

Spokesman Greg Turnbull says its position is being "completely misrepresented" and it is not opposed to price disclosure and cheaper prescription medicines.

"However, unless pharmacists are paid adequately to dispense medicines, patients will lose out through reduced services and opening hours and some pharmacies may be forced to close."

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